Click below to read AIB's UK Economic Update - Autumn Budget.
More tax rises, little signs of a long term growth strategy
This Budget is set against an uncertain economic backdrop so far this year. GDP growth was robust in the early part of the year, but has since moderated.
The Chancellor had committed to not raising taxes materially further following last year’s hikes to national insurance (NI) on employer contributions, which among other measures raised £40bn.
While the tax rises are largely to fill the hole in the fiscal rules, there are also net spending increases in the budget.
With the OBR report published early in error, the initial market reaction saw a rally in gilt markets, with the 10-year yield falling c.8bp briefly from 4.5% to 4.42%.
The tax hikes are expected dampen GDP growth, albeit they are back-loaded.
